Reply With QuoteSo how much of a difference in monthly payments would it be for a $400,000 loan?
400k at 6.5 is around 2600 for 30 years and about 3500 for 15 years. 40 years would put you about 2400.
The main goal in most homeowners eyes is the lowest payment. Like mentioned above, most subprime borrowers are taking this as a second option because they don't qualify for an interst only product (560 is the lowest fico for I.O). I see a trend of people getting out of the neg am loan and into 40 yr loans. Most 40 yr loans are amortized for 40 but do in 30 (balloon).
So how much of a difference in monthly payments would it be for a $400,000 loan?
400k at 6.5 is around 2600 for 30 years and about 3500 for 15 years. 40 years would put you about 2400.
You still live with mommy and daddy too? :crossx: :crossx:
SSSHHHHH! Don't be spreadin that around.
Those loans (IO, 40yr, etc.) seem to only make sense if you are leveraging to buy other properties. Evenutally you are going to want to stop making payments when you retire. Most people do not have enough money in 401k's or pensions to continue paying a mortgage and living a comfortable lifestyle.
Debt management is often put aside so people can keep up with the 'Jones'). Managing your debt properly can help protect your family's wellfare from outside influences such a drastic change in the equity or real estate markets. That being said, everyone is different and needs to do their own research to decide what best suits their family's goals.
RRRRRRRR. Like the money I have into that thing would make any difference on a $600k + home.:rollside: :rollside:
Maybe you should not have such high exspectations for your first house? 600k+??? I hope you like living with Mommy and Daddy. You might be there a while.
The 40 year amort loans usually have a 10-20 bps add on where the 50 is usually .125 - 25 bps add to any of the standard rates offered by the lender. I work for BNC which is a subprime lender and out of about 40 loans per month that I fund... I would say about 10 will be on a 40 year program, 3-5 might go 50 year, and 15-20 will be IO. Very few subprime borrowers will stick to a 30 year amort loan without any options to lower their payment. The avg person in so cal is staying in a house 5.5 years, and from what im seeing it seems like everyone refi's about every 8mo. In 3 years that I have been on the subprime side, I have yet to see someone shorten their terms ie: 15-20 year fixed. I personally am on a 3/27 IO and a 30/15 2nd.
Maybe you should not have such high exspectations for your first house? 600k+??? I hope you like living with Mommy and Daddy. You might be there a while.
$600k is the average around where I live. They're coming down a little but not much. And no I'm not gonna move to Corona.
$600k is the average around where I live. They're coming down a little but not much. And no I'm not gonna move to Corona.
We were thinking of buying out there before we purchased our Havi house, but once we drove during rush hour traffic, all bets were off. Cool though if you work graveyard or something like that.
I still live with my parents :cry: :cry:
So do you take down your dates parked in the front of your parents house? Or down at the local Sleazy8? :idea:
So do you take down your dates parked in the front of your parents house? Or down at the local Sleazy8? :idea:
I have the whole front part of the house to myself. My parents room is upstairs and in the back. If they only knew what has gone on. But I usually just go to my g/f's place. :rollside: :rollside:
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